On 12.05.2022, the Verkhovna Rada (the Parliament) of Ukraine adopted the Law of Ukraine “On amendments to the Tax Code of Ukraine and other Laws of Ukraine on the tax control peculiarities and administration of taxes, levis and single contribution during the martial law, state of emergency” (draft law № 7360, Law № 2260 hereinafter – Law).
Main changes made to the Tax Code of Ukraine (hereinafter – Code):
During the martial law, if the taxpayer does not have opportunity to timely register tax invoices / adjustment calculations in the Unified Register of Tax Invoices, submit tax reporting and pay taxes and levies, such taxpayers are exempted from fines with mandatory performance of such duties for six months after termination or abolition of the martial law in Ukraine.
A similar rule on exemption from financial liability is provided for the taxpayer in respect of its branch, representative office, separate or other structural unit.
Tax liabilities for the taxpayers, who have opportunity, are renewed in a timely manner:
- to register tax invoices / adjustment calculations in the Unified Register of Tax Invoices,
- to submit tax reporting,
- pay taxes and levies;
Accordingly, such payers are released from liability for late performance of such obligations, the deadline for which falls on a period from 24.02.2022 to 27.05.2022:
- registration of tax invoices / adjustment calculations for the supply of products / services carried out in a period of February – May 2022 until 07.2022 (registration of tax invoices / adjustment calculations in the Unified Register of Tax Invoices must be done for tax credit reflected in the VAT tax declaration for the reporting (tax) periods February – May 2022 on the basis of primary (settlement) documents).
- submission of tax reporting is by 07.2022.
- payment of taxes and levies not later than 07.2022.
After expiration of these terms and non-fulfillment of the by taxpayers’ tax obligation, such taxpayers will be subject to penalties determined by the Code.
Taxpayers, including in respect of their branch, representative office, separate or other structural unit, whose ability to perform their tax obligations deadline for which falls on a period from 24.02.2022 has renewed, until the date of renewal of the taxpayer’s ability, are released from liability for late registration of tax invoices / adjustment calculations in the Unified Register of Tax Invoices, submission of reporting, payment of taxes and levies under condition that they fulfill such tax obligations within 60 calendar days from the first day of a month following month of renewal of such taxpayers’ opportunities.
Taxpayers who made a transition to the simplified taxation system with 2% payment of tax are released from liability for late compliance with tax obligations deadline for which falls on a period from 24.02.2022 before the date of transition to the simplified taxation system, provided that such obligations are met within 60 days from the date of transition to the taxation system on which such taxpayer was before election of the single tax at 2% rate.
Taxpayers, who correct errors by submitting adjustment calculations by 25.07.2022, are exempted from penalties for understatement of tax liabilities for reporting tax periods during the martial law.
Temporarily, until termination or abolition of the martial law, the VAT payers will not be entitled to submit adjustment calculations to tax declarations for reporting (tax) periods until February 2022 with indicators on reduction of tax liabilities and / or declare the VAT amount for budgetary refunding.
Note! Procedure for confirming possibility or impossibility of fulfilling tax obligation and list of documents confirming impossibility of fulfilling such obligations is established by the Ministry of Finance.
In-place audits of tax reporting, timeliness of registration of tax invoices / adjustment calculations in the Unified Register of Tax Invoices, timeliness of submission of tax declarations (calculations) and timeliness of payment of agreed amounts of tax liabilities are resumed.
There are determined terms of conducting in-place tax audits of value added tax declarations and adjustment calculations for them for the reporting tax periods of:
- February, March, April, May 2022 – begin the day after 20.07.2022 and end not later than 20.09.2022;
- June, July 2022 – begin the day after 20.08.2022 and end not later than 20.10.2022.
Submitted adjustment calculations to the value added tax declarations for reporting tax periods until February 2022 are checked within a period specified in this Paragraph for the reporting period on which the day of submission of such adjustment calculations falls.
Resumption of conduction of documentary audits:
- conducted at the taxpayer’s request;
- in case of reorganization, termination, bankruptcy of a person;
- audits on currency control;
- in case the payer declares budgetary refunding and / or negative value of the VAT.
Law № 2260-IX excludes possibility, established for a period of the martial law, state of emergency, for taxpayers to submit to the supervisory authority tax declarations and other documents in a paper form, as they were required to submit reporting in the electronic form.
Law enters into force on the day following the day of its publication – on 27.05.2022. The procedure and deadlines for in-place audits of tax declarations (adjustment calculations) with declared VAT amounts for budgetary refunding come into force on 02.06.2022.
According to the materials of the Tax Service of Ukraine
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